A

PROJECT REPORT ON
“MANAGEMENT STUDY
On customer satisfaction
Of
Sri Ranga enterprrises

Submitted in
IN PARTIAL FULFILLMENT OF THE REQUUIREMENT FOR AWARD
OF BACHOLER OF BUSINESS MANAGEMENT
by

Abhrajyoti sen
Reg.no.08zkc08001

FACULTY GUIDE COMPANY GUIDE

Mrs.Nila Chotai S.R lolakshi
Assistant Professor Branch Manager

#3, Lingadheeranahalli, Off Magadi Road Bangalore – 560 091

 Student DECLARATION

I abhrajyoti sen student of the bachelor of Business management hereby declare

that all information, facts and figures in this report are my own findings an
experience at Sri Ranga enterprrises

I also hereby declare that all the facts, figures and information given in this report
are absolutely correct

This information has been used for purely academic purpose.

Abhrajyoti sen
Reg. no 08zkc08001

2
 PREFACE

This summer training provides a student with an opportunity to understand in full

the real life working environment, which is a bit different from normal theory
classes. Our class knowledge attains maturity and perfection through application in
the practical field application of management principle in all branches whether
personnel, finance, information technology etc results in more sufficient and
effective utilization of available resources.

One learns through practice, management in best learn if the students, handles it
systematically, practical training is supposed to serve as a starting point will held
the student gain off confidence and a familiarity with the subject.

The summer training program is an integral part of BBM course in Bangalore

University.

I have done my summer training for, Bangalore. My topic of study was

“MANAGEMENT STUDY” on CUSTOMER SATISFACTION.

I have no hesitation in saying that this study has given me the confidence to face
the real market world.

I have tried my best to do honesty and justice to the topic and any weakness and
shortcomings are unintentional and are regretted.

3
 ACKNOWLEDGEMENT

I take this opportunity to express my sincere thanks and deep gratitude to all those
people who extended their whole hearted co–operation and have helped me in
completing this project successfully.

First of all, I express my sincere gratitude to S.R. LOLAKSHI for giving me an

opportunity to work under their guidance.

I also express my gratitude to Mrs.Nila Chotai for all the help and guidance
extended to me by them at every stage of my training. Their inspiring suggestions
and timely guidance enabled me to perceive the various aspects of the project in a
new light.

I would also like to thank to Mrs.Kamini Dhruva - Associate Professor

for their constant support during the entire Project.

Finally, I would also like to thank all members of the organization for having
guided and encouraged me at various stages throughout the duration of the
project.In all I found a congenial work environment in Sri RANGA enterprrises
and completion of the project will mark a new beginning for me in the future.

Abhrajyoti sen
Reg.no 08zkc08001

4
 Index

Sl no title page no
1. Introduction

2. Research design &methodology

2.1-Title of the project
2.2-Objective and scope of the study
2.3-Methodology
2.4-Tools and techniques for collection of data
2.5-Limitation of the study
2.6-Plan of analysis
3. Company profile
4. Analysis & interpretation
5. Summary of finding, recommendation
& conclusions
Bibliography annexure
(including questionnaire)

5
 Introduction

MTS India (formally Sistema Shyam TeleServices Limited), referred to simply

as MTS, is an Indian telecom service provider. Shyam holds the Unified Service Access
License for the Rajasthan circle and operates Basic Telephony, mobile telephony
(CDMA) and broadband services in the province. Shyam Telelink is the end-to-end
service provider in Rajasthan with more than 269,000 subscribers as on August 2008
and a strong brand – Rainbow

ABOUT MTS
Mobile TeleSystems OJSC ("MTS") is the leading telecommunications group in Russia, Eastern
Europe and Central Asia, offering mobile and fixed voice, broadband, pay TV as well as content
and entertainment services in one of the world's fastest growing regions. Including its
subsidiaries, as of December 31, 2009, the Group serviced over 102.4 million mobile subscribers
in Russia, Ukraine, Uzbekistan, Turkmenistan, Armenia and Belarus, a region that boasts a total
population of more than 230 million. The Group’s fixed business, as of December 31, 2009, had
a total of 7.5 million households passed, 1.3 million broadband Internet and 2.1 million pay-TV
subscribers

MTS has been listed on the New York Stock Exchange since July 2000 and trades under the
ticker MBT. The Company’s shares have been listed locally on Moscow Interbank Currency
Exchange (MICEX) since November 2003 under the symbol MTSI. The free float of the
Company’s shares is approximately 46.7%. MTS is 52.8% majority-owned by Sistema, the
largest private sector consumer services company in Russia and the CIS.
 

In 2009, MTS' revenues reached $9.8 billion. According to Informa Telecoms & Media's World
Cellular Information Service, MTS ranks as the 9th largest operator in the world by
proportionate subscriptions at the end of 2009.
6
 MTS Brand
MTS launched its current brand in 2006, building on the reputation as the leader and highest
quality operator in the region. The brand was developed to attract customers in a variety of
cultural, socio-geographic and income segments with the consistent message of quality and
leadership.
The strength of the brand was recognized internationally in 2008, when MTS became the first
and only Russian company to enter BRANDZ™ Top 100 Most Powerful Brands, a ranking
published by the Financial Times and Millward Brown, a leading global market research and
consulting firm.

In December 2008, MTS extended its brand outside the CIS borders. MTS and Shyam Telelink
Limited, JSFC Sistema's telecommunications subsidiary in India, announced the agreement to
allow Shyam Telelink to use MTS brand in India. The decision to introduce the brand to India is
reflective of the brand’s success in the Company’s markets of operation since its launch in May
2006.

GROUP STRUCTURE
On August 14, 2006, MTS’ Board of Directors unanimously approved the implementation of the
Company’s new management structure in order to strengthen the strategic and operational
functions through the creation of a simple and transparent structure. The change appropriated
fiscal responsibility on the business unit level through the introduction of KPI targets required to
be completed by the respective management. The structure now includes:
 Corporate Center with control over strategic and investment decisions, as well as brand
development, on Group level;
 Business unit “MTS Russia” with control over operations in the ten macro-regions;
 Business unit “MTS Ukraine”;
 Business unit “Foreign subsidiaries” with oversight over MTS operations in Uzbekistan,
Turkmenistan, Armenia and Belarus.

HISTORY
MTS was established in October 1993 by Moscow City Telephone Network (MGTS), T-Mobile
Deutschland GmbH (T-Mobile), an affiliate of Deutsche Telekom AG, Siemens AG (Siemens)
and several other shareholders. In late 1996, Sistema JSFC acquired a majority stake in MTS and
has remained the primary owner ever since.

7
MTS was the first company to launch GSM services in the Moscow region in 1994. In
subsequent years, MTS has expanded rapidly in Russia largely through the acquisition of smaller
independent players and became the leading national mobile operator.

MTS initiated its international expansion in 2002 through the establishment of Mobile
TeleSystems LLC, a joint venture with Be telecom, the national fixed line operator in Belarus.
In 2003, MTS continued to expand in the CIS by acquiring the leading operator UMC in
Ukraine, the biggest CIS market outside of Russia.

MTS entered Central Asia in 2004 through the acquisition of the leading mobile phone operator
in Uzbekistan, Uzdunrobita. In June 2005, the Company acquired Barash Communications
Technologies, Inc., the number one operator in Turkmenistan. 
In September 2007, MTS continued its international expansion through the acquisition of the
leading mobile operator in Armenia, K-Telecom.

In December 2008, MTS extended its brand outside the CIS borders. MTS and Shyam Telelink
Limited, JSFC Sistema's telecommunications subsidiary in India, announced the agreement to
allow Shyam Telelink to use MTS brand in India. The decision to introduce the brand to India is
reflective of the brand’s success in the Company’s markets of operation since its launch in May
2006. In April 2008, MTS brand was recognized as one of the BRANDZ™ Top 100 Most
Powerful Brands, a ranking published by the Financial Times and Millward Brown, a leading
global market research and consulting firm.

Today, Mobile TeleSystems is the largest mobile phone operator in Russia and the CIS. MTS is a
multinational corporation of a new type, based in a high-growth emerging market and
simultaneously entering other developing markets with a unified brand. Having been recognized
internationally for corporate governance and transparency, MTS is not only a leading Russian
blue-chip company, but a truly global organization.

PRESIDENT AND CHIEF EXECUTIVE OFFICER

Mikhail Shamolin was appointed President and Chief Executive Officer (CEO) of MTS Group in
May 2008. Prior to his current role, Mr. Shamolin held the position of Vice President, Head of

8
Business Unit “MTS Russia” since August 2006. In this capacity, Mr. Shamolin managed the
largest MTS business unit, one which contributes roughly 75% of value to the Company.

During his tenure, revenues grew 67% and operating efficiency improved considerably as Mr.
Shamolin presided over sustained growth in voice usage and adoption of value-added services,
both of which led to an over 50% rise in average revenue per user (ARPU). Mr. Shamolin joined
MTS in July 2005 as Vice President for Sales and Customer Service.

He serves as a member of the MTS Board of Directors since October 2008.

Prior to joining MTS, Mr. Shamolin worked at McKinsey & Co. from 1998 to 2004. In 2004 and
2005, he worked at Interpipe Corp. (Ukraine) as Managing Director of the Ferroalloys Division.
Mr. Shamolin graduated from the Russian Academy of Government Service under the President
of the Russian Federation in 1993

. From 1996 to 1997, he completed a finance and management course for top managers at the
Wharton Business School.

VICE PRESIDENT FOR STRATEGY AND CORPORATE DEVELOPMENT

Michael Hecker joined MTS in May 2006. He currently serves as Vice President for Strategy and
Corporate Development.

Prior to joining MTS, Mr. Hecker worked at A.T. Kearney Europe from 2000-2006, focusing on
strategy, marketing and finance in European telecommunications and consumer goods industries.
Prior to that, he worked as a Junior Lawyer in Berlin and Brandenburg (Germany).

Michael Hecker was born in 1970 in Kiel (Germany). He is a graduate in International Politics
and Administration of the Pierre Mendès France University of Grenoble (France) and a graduate
in Law (1. and 2. German State Exam) and Modern History of the University of Göttingen
(Germany), where he holds a PhD in Constitutional History.

9
 CORPORATE SOCIAL RESPONSIBILITY

MTS, the largest mobile operator in Russia and the CIS, embraces social responsibility
and makes a commitment to society and the environment by recognizing the impact that
our decisions and actions can make. Our sense of responsibility is reflected in the
ethical standards of our business activities, whereby we:

 Invest in stable development, in social health and prosperity.

 Consider the interests of all parties involved.

 Follow the rules and practices of the markets in which we operate or are
regulated, while emulating international standards of business behavior.

 Facilitate greater information transparency and enhance corporate governance.

 These standards are to be followed in all our relations with partners and
consumers.
One of MTS’ goals is to fully integrate this responsibility and adopt it in all our
interactions with customers, employees, partners and regulators.
Our CSR strategy has been established with regard to the requirements of our society
and our customers. Its main aim is to improve the quality of peoples’ lives.
By quality of life, we mean the synergy between criteria, socio-economic or other, which
reflect the level and extent to which people have achieved prosperity in the various
areas of their lives. A high quality of life is evidence of stable social development, both
of society and individuals.

Acquisition by Sistema
The largest public diversified corporation in Russia and the CIS - Sistema acquired a
10% stake in Shyam Telelink for a total cash consideration of US$ 11.4 million at the
end of September 2007. In October 2007, Sistema signed a share purchase agreement
for the acquisition of an additional 41% stake in Shyam Telelink and a call option
agreement, which gives Sistema the right to increase its stake in Shyam Telelink from
51% up to a maximum of 74%. Later in December 2007, Sistema received an approval
for the acquisition of the blocking stake in Shyam Telelink from the Foreign Investment
Promotion Board (FIPB) of India. As a result of the acquisition of the additional 41%
stake, the overall purchase price totaled US$ 58.1 million.
10
Pan-India rollout
Shyam Telecom along with their partner Sistema had applied for UASL license in 21
telecom circles of India. In August 2008, they became the first new mobile operator to get a
pan-India start-up spectrum to start their mobile service operations in the country. They would
be providing mobile services based on CDMA technology under the brand name MTS
India.Shyam Telecom given Project to ZTE and Huawei for network expansion.

As of December 17, 2010 the total subscriber base of MTS India is 8 million present in 15
circles, just launched in UP East and West.

Wireless Broadband Service

MTS launched the high-speed mobile broadband service, MBlaze, in November 2009 and has
seen tremendous market acceptance with over 4,00,000 (As per December 2010 Data) satisfied
customers in a short span of time.In April 2010, MTS launched MTS TV for MBlaze
customers.MTS MBlaze have its coverage in 80+ cities as of December 2010. MTS has also
announced pan-India roaming for its MBlaze users in April–May 2010. MTS also provides
MBrowse which is CDMA-1x technology based internet service.

National Telecom Award

MTS, the mobile telephony brand of Sistema-Shyam Teleservices (SSTL) has been conferred
National Telecom Award for being the fastest growing data operator in India. Mr. Vsevolod
Rozanov, CEO, Sistema Shyam TeleServices Ltd. received the award on behalf of the company
from Mr J S Sarma, Chairman, Telecom Regulatory Authority of India and Mr P J Thomas,
Secretary, Department of Telecom, Government of India. The award is recognition of MTS
establishing itself as a fastest growing data operator in the market. MTS has close to one lakh
mobile broadband subscribers in less than six months, for its high speed mobile broadband
service, MBlaze. Within a short span time, the company has launched its services in 15 telecom
11
circles(UP East and West is the latest circle) across the country and has already achieved a
overall subscriber base of 8 million customers.

MTS India Offices

At present MTS India present in 15 circles out of 22 telecom circles of India.

 Andhra Pradesh
 Bihar-Jharkand
 Chennai
 Delhi-Haryana
 Karnataka
 Kerala
 Kolkata
 Maharashtra-Goa
 Mumbai
 Rajasthan
 Tamil Nadu
 West Bengal & Sikkim
 Gujarat
 UP East and West

More information:

Sistema Shyam TeleServices launches MTS brand in India

Announces pan-Indian foray, to foster growth of the mobile telephony market in the country

New Delhi, March 26, 2009: Sistema Shyam TeleServices Limited (SSTL), a joint venture
between Sistema (LSE: SSA) of Russia and Shyam Group of India, today announced the
12
launch of its globally acclaimed brand MTS in India with the commencement of its services in
Tamil Nadu. The company has entered into agreement with Mobile TeleSystems OJSC (MTS;
NYSE: MBT) of Russia, to launch its pan-India operations under the MTS brand. SSTL has
licenses and spectrum to provide mobile telephony services on the CDMA platform in all 22
circles across the country, covering 28 states.

Speaking on the occasion, Sergey Cheremin, Senior Vice President & Head of External
Relations Division, Sistema said, “India is a key market for Sistema, as it offers high potential
for growth. Our majority stake in Sistema Shyam TeleServices, is in alignment with our strategy
to enter high growth markets and have an extended footprint in telecom. The market dynamics,
growth prospects, business environment in India, substantiate our decision.”

“The tie-up with Sistema Shyam TeleServices gives us an opportunity to increase our brand
value in one of the most exciting telecom markets in the world. We strongly believe that our
association will be instrumental in extending a global telecom experience to the MTS
subscribers in the country”, said Mikhail Gerchuk, Vice President & Chief Commercial Officer,
MTS.

The existing services of SSTL in Rajasthan under the brand ‘Rainbow’ will also be rebranded to
MTS shortly. The company aims to significantly increase the level of telecom penetration in the
country by offering subscribers access to superior connectivity at affordable prices.

Speaking at the launch, Mr. Vsevolod Rozanov, President and CEO of Sistema Shyam
TeleServices, said: “The globally recognized brand MTS, built on a superior technology platform
and strong marketing programmes, will give a competitive advantage to Sistema Shyam
TeleServices. Our mission is to enable accessibility and connectivity, to enable people
communicate seamlessly.”

“We are proud on the launch of pan-India operations of Sistema Shyam TeleServices with
MTS. We intend to play an active role in the overall development of India’s telecom
infrastructure as well as in providing world-class, superior and value-added services for our
subscribers,” added Mr. Alok Tandon, Managing Director Sistema Shyam TeleServices
MTS is one of the Top 100 Most Powerful Brands in the world, and is the 8th largest mobile
operator in the world. This is recognition of its leadership across the CIS and increasing global
relevance.

About Sistema Shyam Teleservices

Sistema Shyam TeleServices {SSTL} is a joint venture company between Sistema {LSE: SSA}
of Russia
and Shyam Group of India. Sistema is the majority share holder in this joint venture with 74%
stake.
13
SSTL has licenses and spectrum to provide mobile telephony services on the in all 22 circles
across the
country.

About Sistema Corporation (SSA)

Sistema is the largest public diversified corporation in Russia and the CIS, which manages fast
growing
companies operating in the telecommunications, consumer services sectors and technology
industries
and has over 100 million customers. Sistema develops and manages market-leading businesses in
selected industries, including telecommunications, technology, banking, real estate, retail, media,
tourism
and healthcare. Founded in 1993, the company reported revenues of US$ 12.6 billion for the first
nine
months of 2008 (unaudited), and total assets of US$ 32.0 billion as at September 30, 2008
(unaudited).
Sistema’s shares are listed under the symbol “SSA” on the London Stock Exchange, under the
symbol
“AFKS” on the Russian Trading System (RTS), under the symbol “AFKC” on the Moscow
Interbank
Currency Exchange (MICEX), and under the symbol “SIST” on the Moscow Stock Exchange
(MSE). For
further information, please visit www.sistema.com.vAbout Shyam Group
Shyam group has diversified interests in telecom, manufacturing, services and fertilizer. Essel
Shyam
Communications Ltd, a joint venture between Essel and Shyam group, is a leading pan-India
VSAT
Service Company and is one of the largest in the field of media management and up linking.

MTS TV Terms And Policy

14
 

I. Agreement to these Terms

THIS IS A BINDING LEGAL AGREEMENT BETWEEN YOU AND Apalya

Technologies Private Limited (REFERRED TO HEREIN AS "COMPANY," "Apalya, and
US," Partner"  "OUR", “WE”) GOVERNING YOUR ACCESS AND/OR USE OF THIS
SERVICE. YOU MUST READ THESE TERMS IN THEIR ENTIRETY. Your access or
use of this Service constitutes your agreement to be bound to these Terms, which includes
any restrictions posted or any changes that may exist when you re-access our application. If
you do not agree with these Terms, do not use this Application/Service. Discontinuing use
of this Application/Service shall not modify any Terms that apply to prior uses on the
Application/Service   

II. Agreement to Changes or Updates     

     
We reserve the right to make changes and update any information or Content contained
and/or Terms without prior notice. Any changes to these provisions will be incorporated
into revised Terms that we will posted. Changes shall be effective when they are posted.
Users have the obligation to review changes to these Terms when they access or re-access
the application.

III. Application/Service Content Ownership         

This content is owned and operated by Content Providers. Content Provider, its parents,
entities under common ownership or control with Content Provider ("Affiliates") or parties
have granted Apalya Technologies Private Limited ("Licensors") specific usage
authorizations. "Content Provider" owns the logos, images, text, tools, graphics, marks,
names, photographs, sound, illustrations, design elements, materials; Videos (collectively
"Content") displayed or delivered on this application. Copyrights, trademarks, trade names,
service marks or names, or other proprietary rights and laws protect this Content.

IV. Violations and Termination

Any conduct that in any way violates these Terms or any posted restrictions or guidelines
may result, in our sole discretion, in the termination of user participation, registrations
and/or our pursuit of any legal damages or remedies. If necessary, or as authorized under
applicable law, we may cooperate with local, state and/or central authorities to protect our
application/service, the Content, the Company, its parents, Affiliates, Licensors and/or
Users; to comply with applicable laws; or to prevent unauthorized access or use of this
Application/Service or Content. We retain the right to deny access to our
Application/Service, in our sole discretion, to any Users for any reason, including for any
violation of these Terms.

V. Application/Service Participation and Registration

Participation on this Application/Service is voluntary. You must be eighteen (18) years of

age or older to participate in this offerings and registrations. You may also be required to
meet an older minimum age requirement and agree to additional rules and terms posted on
our Application/Service for participation in certain contests, sweepstakes, special events, or
additional service offerings. You may discontinue registrations by calling us or
unsubscribing through application.
15

VI. Restrictions on Use of Content

Title of the project

16
“Customer satisfaction of MTS with
reference to Sri Ranga Enreprises”

OBJECTIVE AND SCOPE OF STUDY

17
 OBJECTIVES

1. To understand the CUSTOMER SATISFICATION activities carried Out in Sri

RANGA enterprrises

2. To analyze the MANAGEMENT STUDY in the Organization.

3. To ensure adequate control over physical inventory and proper identification &
classification of assets.

5. To understand the concept of various Documents.

18
 SCOPE

I had done my project training in RANGA at BANGALORE. The topic given to

me was regarding MANAGEMENT STUDY of the company. The study
conducted by me has helped in enhancing my skill and thinking power.

The main scope of this study is to ascertain physical inventory and various
methods to maintain an adequate control over recording and verification of fixed
assets.

As a researcher, during this training period I had co-related my theoretical aspects

into practical one. After knowing the actual problem, now I am able to solve it in
effective and efficient manner.

Research methodology
Analysis of past data a helps to understand the effectiviness
customer satisfaction strategy of ranga.this is a conclusive research.

Data collection

Basically there are methods of data collection they are:

19
  Primary data
 Secondary data

To achieve the objective, information is collected through secondary

data. Secondary data one those which have been already been
collected. It may be published or unpublished data.
Some of the data are collected through visit and personal
observation. But mainly data are collected from the annual report of
metropolitan transit system. All the information which are collected,
through data are analyzed interpreted and tabulated to fulfill the
objective.
In this study I have used both primary and secondary data.

Tools of analysis

It is essential to use a systematic research methodology for

the assessment of a project because without the use of a
research methodology analysis of any company or
organization will not be possible.

20
In the present analysis moRANGAy secondary data have
been used.it is worth a while to mention that I have used the
following types of published data:

 Balance sheet
 Profit & loss a/c
 Prospectus of the company
 General body meeting reports
 Schedules

Limitation of the study

 The research work is mainly based on both

primary and secondary data that is, it is based on
audited accounts and its audited accounts are
ambiguous then the result will be misleading.

21
 Less importance has been given to primary data
which is actually the original data and more
reliable.
 The research work is completed in one month,
which is not enough for any type of proper and
reliable research work.

COMPANY INTRODUCTION
SRI RANGA ENTERPRISES

22
Sri RANGA Enterprises was awarded the license to operate Basic Telephony
Services in Karnataka,bangalore under the fixed license fee regime in 1996. Sri
RANGA Enterprises started its basic telephone services in Karnataka,bangalore
under the brand name “RANGA” at Bangalore. The company migrated to the
Unified License Regime in November 2003. In the Unified License Regime, the
company can provide basic as well as mobile telephony services in the Telecom
Circle of Karnataka,Bangalore. RANGA offers its services in more than 100 cities,
and has one of the best brand recalls in Karnataka,Bangalore. RANGA offers to
its customers, services based on multiple technologies, which has been possible
because of exhaustive optical fibre backbone of over 3,500 Kms. This has helped
S.R.E to grow as an integrated service provider.

Presently the company has received the licenses for all 22 circles in India.
RANGA Tele services Limited has brought the best technology to the doorstep of
the people of Karnataka,Bangalore RANGA has tied up with various world leaders
like lucent Technologies, IIT Chennai, IBM, Sun Microsystems etc. The company
is listed on the Delhi, Mumbai, Kolkata, Saurastra, and other national stock
exchanges .The basic objective of RANGA Enterprises to provide one window
access to Basic Telephony, Broadband Internet, Entertainment, and E/M-
Commerce through high speed state-of-the-art-network. RANGA Enterprises
providing connectivity to its subscribers using both wireless and wired media in
access network. The wireless connectivity is being provided using Code Division
Multiple Access (CDMA), and or CorDECT.

Russian Telecoms acquired a 10% stake in RANGA Enterprises for a total cash
consideration of US$ 11.4 million at the end of September 2007. RANGA, aims to
become one of India's top five mobile operators and have 60m subscribers by
23
2017.RANGA is the largest private sector consumer services company in Russia
and the CIS. It was founded in 1993, today it has the 7th largest subscriber base in
the World, and the corporation develops and manages a portfolio of market-leading
businesses in selected service-based industries. In total, companies controlled by
Sistema serve more than 80 million consumers in Russia, the CIS and Eastern and
Western Europe. Sistema's shares are listed under the symbol "SSA" on the
London Stock Exchange, under the symbol "AFKS" on the Russian Trading
System (RTS) and the Moscow Interbank Currency Exchange (MICEX), and under
the symbol "SIST" on the Moscow Stock Exchange (MSE).In October 2007,
Sistema signed a share purchase agreement for the acquisition of an additional
41% stake in Sri RANGA Enterprises(formally known as RANGAtelelink
limited)and a call option agreement, which gives Sistema the right to increase its
stake in Sri RANGA Enterprises(formally known as RANGAtelelink limited)from
51% up to a maximum of 74%.The Russian company has been scouting for a
foothold in India for several years now. Earlier, Sistema had tried to pick up a
stake in Aircel Cellular, but the deal fell through. It was also in race for
Hutchison's stake in Hutch-Essar. Sistema, which was founded in 1993, is the
largest private sector consumer services company in Russia. Later in December
2007, Sistema received an approval for the acquisition of the blocking stake in Sri
RANGA Enterprises (formally known as Sri RANGA Enterprisesfrom the Foreign
Investment Promotion Board (FIPB) of India. As a result of the acquisition of the
additional 41% stake, the overall purchase price totaled US$ 58.1 million. By June
2008 Sistema has upped its stake in RANGATelelink, to 73.1% from 51%.
Sistema plans to invest USD 5bn billion dollars in India in the next three years,
targeting telecoms but also real estate, high technology and banking. Sistema is
one of several foreign players keen to establish themselves in India's booming
telecoms market.
24
 RAINBOW IS NOW RANGA

Product Portfolio

Sri RANGA Enterprises (formally known as Sri RANGA Enterprises limited

unconditionally Strives on continuous basis to provide seamless coverage, widest
range of innovative products and services at competitive prices and quick response
to its increasing customer base.

The Product Portfolio of the company is providing state of art products and
services like Fixed Phones (Wireless & Wire line), Mobile Phone (Limited
mobility and Full Mobility within Karnataka,bangalore), ISDN PRI &BRI, Lease
Lines, Broadband, STD PCO & Coin collection Box (Prepaid & Post paid). The
value Added Service segment is witnessing a tremendous growth and company is
also generating maximum mileage through the same services. The Value Added
Services are designed as per the tastes and preferences of the customer which not
only make them happy and delighted but also sustain the ARPU growth. The
company is also foraying in Broadband segment aggressively by enabling it to
complete wire line network with Broadband ADSL 2+ to deliver speeds up to 24
mbps.
25
The Company has distinguished itself from other Fixed Wire line & CDMA
operators by providing for money to its customers through launching a plethora of
Value Added Services. Sri RANGA Enterprises (formally known as Sri RANGA
Enterprises was amongst the many first to launch these services on Fixed Line
Telephony in the country. The gamut includes the following services: Live Pandit
online Services, RAINTONES-Caller Ring Back Tone Service, JUST TALK-
Voice Portal Service, SMART TALK – Multi Party Conferencing, PARALLEL
RINGING , SELECTIVE RINGING, KICK OUT & Prepaid Billing Module for
individual & STD PCO Customers.

Company also offers a broad range of Internet products including: Data on Wire-
ADSL, enables faster internet access up to 24 Mbps, Data on air- PSDN, which
enables a CDMA phone user to access data services (Internet) in a limited
demographic area with speed up to 144 kbps, Data on Cable- CABLE
CorDECT :A technology mix of normal Cable connection and CorDECT
technology for providing high speed Internet, Dedicated Lease Line Services –
These are the committed Internet access at desired speeds and with assured
performances. The company has over 24000 Internet customers.

Market Scenario

The State of Karnataka,bangalore is one amongst the largest Telecom circles and
registering an incredible growth in Fixed Line as well as Mobile telephony. The
current tele-density trend shows that there is still immense potential for Fixed &
Mobile Services in Karnataka,bangalore province. The total number of phones in
Karnataka,bangalore had surpassed the figure of 9.86 Million by March 2007. The
26
total phones consists 76% Mobile phones and 24% fixed phones. The main
competitors in Wire line Fixed Telephony are BSNL and Airtel and in Mobile
Telephony (GSM /CDMA), faces competition from Airtel, Vodafone, Reliance,
Tata and Idea. The Company is having very aggressive plans to move forward in
Broadband product category by deploying ADSL network in the state.

Sistema Introduction

Sistema is the largest public diversified corporation in

Russia and in CIS, which manages fast growing companies
operating in the consumer services sector and has over 100
million customers. Sistema develops and manages market-
leading businesses in selected service-based industries,
including technology, banking,
Telecommunications, real estate, retail, media, tourism and healthcare.
Since its inception in 1993 Sistema has evolved into an international group with
expanding geographical representation focusing on consumer services, through
organic as well as inorganic growth. Subsequent to an IPO in February 2005, 19%
of its shares are traded on London Stock Exchange in the form of Global
Depository Receipts (GDR) under the symbol SSA. It is also listed on the Moscow
Stock Exchange and the Russian trading System.

Investor Relations

Ownership of Sistema RANGATele Services Limited

27
 Sistema RANGATele Services Limited Equity
Structure

      Sistema (LSE : SSA) – 73.71%

         
    RANGAGroup – 23.79%
         
    Public – 2.5%

About the Company

Sistema RANGATele Services (SRANGA) is a joint venture company between

Sistema {LSE: SSA} of Russia and RANGAGroup of India. Sistema is the
majority share holder in this joint venture with a 73.71% equity stake, along with
the RANGAGroup, holding a 23.79% stake and the rest 2.5% being public
partake. SRANGA has spectrum to provide mobile telephony services in all the 22
circles across the country. Presently SRANGA offers mobile telephony services in
the Karnataka,bangalore, Tamil Nadu, Kerala as well as the Kolkata circles. In a
recent development, SRANGA tied up with Mobile Tele Systems OJSC of Russia
to bring the globally acclaimed telecom brand-RANGA-to India. RANGA is the
8th largest telecom brand in the world and has recently been voted as the 71st
ranked brand out of 100 top global brands in the world by Millward Brown.

The Company ‘SISTEMA RANGATele Services Ltd. (SRANGA) was founded in

1998 and operating in the state of Karnataka,bangalore since 2000. SRANGA
obtained a unified Pan-Indian license to provide cellular services in March 2008
and now has spectrum in all 22 Indian Telecom circles, covering 28 administrative
states and 7 union territories with a population of approximately 1.1 billion people.
28
 SRANGA the first telecom operator to acquire the fastest 100,000
customers in the state of Karnataka,bangalore.

History of SRANGA

The company started Telecommunication services in the state of

Karnataka,bangalore through wireless and wire line network from the Year 2000
under the brand name "Rainbow". Rainbow offers VOICE, DATA and IMAGE
services. The customers of the company include Corporate, Hotels, Banks and
High Network Individuals in the state. The company provides high bandwidth and
self protected backbone which provide highly reliable super highway connecting
various cities in the ring.

Change of Company Name

Pursuant to provision of Section 21 of the Companies Act, 1956, the name of

company has been changed from “ RANGAtelelink limited” to “Sistema
RANGATele Services Limited” w.e.f. 22nd January, 2009. The name was
changed in order to reflect the joint venture between Sistema JSFC &
RANGAGroup. This is reiterated that SISTEMA is one of the largest public
diversified corporation in Russia and the CIS, which manages fast growing
companies operating in the consumer service sector and RANGAGroup is a
premier telecommunications equipment design & manufacturing organization in
29
India with an eye on the global markets, and also in order to make all concerned
aware of this Joint Venture.

SRANGA Presence in India

The company has recently launched full mobility services in the state of
Karnataka,bangalore by deploying a state of art CDMA network of more than 830
BTS. About 609 more BTS are in pipe line and will be operational by end of July
2009. Currently SRANGA has more than 10, 00,000 (Voice & Data) SATISFIED
CUSTOMERS on its network. SRANGA has the distinction of having majority of
big corporate, MNCs, Government Departments, Defense services, Banks, Five
star hotels etc.

The Company has obtained an in-principle approval to use GSM technology under
the existing UASL license of Karnataka,bangalore circle on October 18, 2007 from
the DoT. The Company has paid INR 32.25 Cr. as a onetime charge for use of
GSM spectrum and would be paying revenue share license fees on an ongoing
basis under the original terms of the UASL agreement. The Company is in the
process of setting up the infrastructure for launching the services on the alternate
technology. The company is in process of launching CDMA network of more than
19,000 BTS in across India by end of Mar 2010.

Global Recognition

 Top 100 Most Powerful Brands

30
RANGA launched its current brand in 2006, building on the reputation as the
leader and highest quality operator in the region. The brand was developed to
attract customers in a variety of cultural, socio-geographic and income segments
with the consistent message of quality and leadership. To facilitate further growth
and recognition of the brand, RANGA recently adopted new Brand Standards to
communicate the brand consistently in all messaging and launched a new slogan
“Operator Svyazi” to reinforce its perception as a strong, trustworthy and quality-
focused company.

The strength of the brand has been consistent and has been recognized
internationally in both 2009 & 2008 in BRANDZ™ Top 100 Most Powerful
Brands, a ranking published by the Financial Times and Millward Brown, a
leading global market research and consulting firm. RANGA was ranked as the
71st Most Powerful Brand in 2009 & 89th Most Powerful Brand in 2008.

 Business Week Info Tech 100

In May 2008, RANGA was included in the InfoTech 100 ranking of the best-
performing tech companies by Business Week. RANGA was ranked as the 14th
company globally, based on four criteria: shareholder return, return on equity, total
revenues, and revenue growth. RANGA became the highest-ranked company from
Russia, and above such companies as AT&T, LG and Microsoft.

 Trusted Brand 2008

In June 2008, RANGA was recognized by Reader’s Digest as the most Trusted
Brand among mobile operators in Russia. The European Trusted Brands 2008
31
survey was conducted in 16 countries in 14 different languages. In Russia, over
40% of consumers nominated RANGA as the most Trusted Brand in “Mobile
Phone Network” category.

 World Communication Awards

In September 2008, RANGA received three nominations for the World

Communications Awards 2008. The Company made the shortlist in the “Best
Brand”, “Best Mobile Operator” and “Best Project Management” award categories.

 GSMA BOARD

In April 2008, the CEO of RANGA joined the Board of the GSM Association
(GSMA), the global trade association for the mobile industry. GSMA's board
members include 25 operator representatives, the Chair of the Executive
Management Committee - the body that manages the Association's ongoing
activities in the area of products and services - and the GSMA CEO Rob Conway.
Board members include executives of such leading global operators as China
Mobile, AT&T, Orange, Telefonica O2 Europe, T-Mobile, Vodafone, and Telenor
Mobile.

 GSMA 13th Annual Global Mobile Awards

In January 2008, RANGA became the first Russian company to receive a

nomination in the 13th Annual Global Mobile Awards hosted by the GSM
Association (GSMA). RANGA was recognized for its WAP-portal —

32
wap.kids.ranga.ru — designed specifically for children in the d«Best Mobile
Infotainment Portal for News/Entertainment» category.

 Corporate Governance

RANGA was ranked as the most transparent company in Russia by Standard &
Poor’s in 2005, 2006 and 2007.  The ranking was based on the analysis of
ownership structure and shareholders’ rights, financial and operational openness
and composition and procedures of the Board of Directors and Management
Committee.

PAN India Expansion & Project Status

The Indian Telecommunication Industry has emerged as the fastest growing

telecom markets in the world and is poised to deliver swift growth as a result of
several economic reforms that have lead to strong GDP growth. High per Capita
income is also giving impetus for telecom growth. India still remains largely under
penetrated market with over a billion people and it is one of the most attractive
telecom markets in the world today. India is all set to achieve approximately 540
million mobile subscribers by 2010 with compounded annual growth rate 28
percent. Innovation in pricing of services and handsets were the two main factors
contributing to the growth of mobile services in the country. The revenue from
mobile services is expected to increase up to $35 billion by 2010 compared to
$22 billion in FY07.

Keeping in view the growth of telecom sector in India, Company aims to

strengthen its operation on Pan India basis and putting its prominent efforts to
33
expand its operation to new 21 Circles for which UASL Licenses and Start up
Spectrum have been granted to the Company by DoT. The Company has engaged
various consultants for finalizing Strategy, Business Plan, Network Roll Out
and other plans. The Company has also completed the vendor selection
process for Pan India Network Equipment supplies and installation.

The Company has already completed the first phase of expansion of its business
operations inKarnataka,bangaloreThe Roll out of Pan India operations is also
under process and to be completed in next 9-12 months time. The Company is
planning to start its operations from south and east first after expansion
inKarnataka,bangaloreThe network design for Pan India services includes one of
the advance communication infrastructures considering the growth and supporting
the mobile, fixed, cable, broadband and value added services. It is also proposed to
offer roaming services to the customers in the new circles through covering the
maximum possible area.
Major Players in Telecom Industry

1. RELIANCE

2. BHARTI AIRTEL LIMITED

3. TATA TELESERVICES

4. IDEA CELLULER

5. VODAFONE

6. BSNL
34
 Analysis of telecom players

Telecom industry is a vast field today we include fixed phone, wireless phone,
internet service, VSAT, DTH and service providers in telecom industry but for my
convenience I focus only wireless phone service only. In wireless service there are
many companies out of them few are below---

Reliance Communication Limited is a part of the Reliance Anil

Dhiru bhai Ambani Group. Reliance Communication is India’s largest integrated
fully converged communications service provider in the private sector with an
individual, enterprise & customer base of over 40 million. Reliance

35
Communication is one of the top two operators in the Indian wireless market, the
largest growing wireless market in the world. Reliance com is one of the largest
wealth craters with market capitalization of over Rs.1, 00,000 Cr.

Reliance Communication has the largest capacity network in the country, the most
future ready integrated and converged network that can support even following 3G,
4G telephony and broadband services. More than half of the world’s population
connects with each other on the Reliance network. Every third call that comes in
India is carried on Reliance’s network. Reliance Communication is the preferred
network of over one million customers in USA, UK, Canada, Australia and New
Zealand.

Bharti Airtel Limited is a leading Indian

telecommunication service provider with 49.01 million customers. The company
has three strategic business units’ i.e. mobile services, broadband and telephone
services and enterprise services.
Mobile services unit consists largest portion of the company business, both in
terms of total revenues and total customers, Bharti Airtel offers mobile services in
all 23 telecom circles of India and is therefore the first private mobile services
operator to have an all India presence. The Company’s mobile customer base
accounts for a 22.9% share of the overall wireless(GSM+CDMA) market as on
march 31, 2007 and has a presence in 4676 census towns and in 2,07,327non-cenus
towns and villages, covering an addressable population of 59% of the total
population.

Broadband and Telephone Services (B&TS) provides a wide gamut of voice

and data services through a wire line network. Bharti Airtel is the first private
operator to provide fixed line and broadband services over the same copper wire. It
provides innovative, cost effective solutions for corporate, small business
36
enterprises and individual homes. Given the high cost of creating a wire line
network, B&TS has adopted a focused approach to network creation and
customer’s acquisition. Currently B&TS provides services in 94 cities across 22
telecom circles. The unit had 1.75 million voice customers. It has a capacity of
more than 3 million tags with a cumulative investment of over Rs.40 bn.

TTML is a part of the Rs. 1, 20,000 crore (US $ 29

billion) Tata group that has over 87 companies, over 3, 30,000 employs and more
than 2.8 million shareholders. Most of the people think that TTML and TATA
Indicom both are the same companies but it is not true, TTML is a listed company
and it is a SBU of TATA Indicom, and TTML presence in Maharashtra and Goa
only.

Formally huge tele.com (India) ltd. That company was renamed to Tata
Teleservices Maharashtra Limited, subsequently to the acquisition of 70.85%
equity shareholding by Tata group in December 2002.

TTML provides mobile, fixed wireless phone (FWP), public telephone booths and
wire line services. Broad band data network & application services include leased
line, DSL, Wi-Fi, Ethernet, managed gateway services and conferencing services.
TTML is a market leader in commercial, residential and PCO market in
Maharashtra circle.

37
 IDEA cellular is a part of the Aditya Birla Group, India’s first
truly multinational corporation. IDEA cellular is a leading GSM mobile service
operator with pan India licenses with a customer base of 40 million in 15 services
areas.

Idea enters in market so late but it gain better competitive advantage in market
because the support of its parent group and by adopting the focus market strategy.

38
 Introduction of the Topic

Sistema Sri RANGA Enterprises (formally known as

Sri RANGA Enterprises

Finance Department

STANDARD OPERATIONG PROCEDURE FOR

FIXED ASSET MANAGEMENT

39
Process Overview:
Material is received at the warehouse / site on the basis of a purchase order /work
order issued by commercial Department. On receipt of material / completion of
work and related documents (invoice/challan/work certificate) a Goods Receipt
Note/Services Receipt Note (GRN/SRN) is prepared by the stores personnel. For
Direct Delivery to site a corresponding Material Transfer Note (MTN) is prepared
simultaneously indicating material issued from stores. Therefore, Finance
personnel records inventory in Capital Work in Progress (CWIP) basis the
GRN/SRN report generated from system.

Material issue is undertaken by the stores personnel on the basis of an approved

Material Requisition Note (MRN) received from the user department. A Material
Transfer Note (MTN) is prepared on issue and the MTN report, along with details
of site to which material is issued, is forwarded to finance. The Site on air report
along with specifications of asset installed, and site commissioning date is obtained
from networks which is subsequently reconciled lying in CWIP are transferred to
Fixed Asset Register(FAR). The Commissioning date certified by network
department is taken as the date of capitalization in FAR. Assets other than cell sites
are capitalized from the put to use date as certified by the user department.
This process documents the standards, guidelines and tracking methodologies for
the flow of inventory till the time it is capitalized and updates in FAR. The
document also highlights the risks inherent in the process that should be covered
by the materials/ Commercial and Finance team.

Initiation of process: User department raises a Material Requisition Note

(MRN) based on material requirement.

Termination of process: All assets put to use/ sites on air are adequately
monitored and are reflected in the FAR at accurate values.

Process Objective: The objective of this process is to ensure adequate

control over material receipts, issues and control over physical inventory held at

40
the warehouse /sites. He process also covers the steps involved to ensure accurate
measurement and recording of costs to be capitalized and depreciated.

The process also aims at ensuring adequate control over tagging, physical
verification, movement/site returns and disposal of assets.

While doing so it also ensures proper identification and classification of assets.

Scope:

Scope of the process covers:

 Handling of material receipts and issues at warehouse/site

 Physical controls over inventory held at warehouse
 CWIP accounting ,excluding cenvatable tax component
 Reconciliation of CWIP GL with CWIP register
 Capitalization of Fixed Assets with categorization of assets.
 Reconciliation of FA GL with FAR
 Inter location movement of assets
 Return to warehouse
 Disposal of assets
 Physical verification and reconciliation of book vs. physical asset.

Key Functional Departments:

41
 Department Key Responsibility
Network Information on cell site commissioning/expansion
and cell site configuration along with asset
installed details.
Materials/Commercial  Material Transfer Note (MTN) report along
with supporting documents
 Details on asset disposal captured in Asset
Disposal Form (ADF)
IT  Installation certificates for asset capitalization
User department  Asset Movement Form (AMF) in respect of
inter location movement of assets.

Key inputs

 GRN/SRN report from system

 MTN report giving details of site wise material issues
 Information on cell site commissioning/expansion and cell site configuration
along with asset installed details
 Details on material returns to warehouse/inter location asset movement/ asset
disposal

Process outputs

 Creation of vendor liability for material receipt

 CWIP record giving details of inventory location (store/site) and date of receipt
for generation of ageing report.
 Updated FAR

Process Narrative

42
The process documents the method of tracking material receipts, issues and control
over physical inventory. The organization aims to ensure accurate accounting for
the same, while maintaining operational efficiency.

I) Material Receipts:

User department raises an MRN, capturing specifications and quality details of

material required. The User Department Head approves the MRN as per the policy
and subsequently forwards to commercial for use of material. Commercial
personnel checks whether the requirement can be met out of the existing inventory
stock at the warehouse. If sufficient inventory stocks are not available, the user
department is asked to raise an indent. At the time of raising the indent the user
department personnel specifies the material category as capital item or revenue
item based on the standard item master maintained. All indents raised are approved
by the User Department Head centrally, excluding certain opex items as per policy.
A Purchase order (PO) is issued against the indent (also specifying the item
category- capex/ opex) and material is received.

 At the warehouse:

In case of receipt of receipt of material at the warehouse, the warehouse in-charge

verifies whether the quality specifications and value of material delivered as per
the PO. If the material delivered does not meet the stipulated specifications, the
material may be rejected as per the policy. In case of a rejection of material, the
warehouse in-charge marks the same on the delivery challan/invoice and informs
the User Department and vendor of the same. Subsequently, the warehouse in-
charge makes an entry in the Material Return Register (MRR), capturing details of
the delivery and material details of the rejected material. The rejected material is
stored separately and returned through issue of a non-returnable gate pass
If no discrepancies are observed, the warehouse in-charge updates the inventory
register and raises a Goods Receipt Note (GRN) in System (FOC material received
is separately noted). Material received is stored as per the prescribed stacking
norms to ensure easy traceability and access.

43
 At the location:

In case of receipt of material directly at the location, the Site Engineer/User

Department Personnel verifies the material specifications vis-à-vis the
invoice/challan delivered. If the quantity of the material is not as per
invoice/challan the Site Engineer/User Department personnel marks the
excess/shortage on the delivery challan/invoice and forwards the invoice/delivery
challan to network personnel/ User Department personnel for approval.
Network/User Department personnel approve the document and forward the same
to the warehouse in-charge. The warehouse in-charge validates the invoice quantity
vis-à-vis the PO quantity or as mentioned in the delivery schedule provided in the
PO.

If invoice quantity is greater than the PO quantity the warehouse in-charge informs
the vendor and User Department of the same. If a consensus is reached as per
policy to accept the extra quantity the User Department personnel amend the
Indent raises a fresh indent for the additional quantity and forwards it for requisite
approvals to User Department Head. Thereafter, the commercial department
amends the PO and relevant commercial personnel as per policy.

If the invoice quantity is lesser than the PO quantity the warehouse in-charge
informs the Vendor and User Department of the shortage and escalates the
incomplete delivery as per PO schedule, as per policy.

For the material being accepted, the warehouse in-charge raises a Goods Received
Note (GRN) in System. Simultaneously, the Warehouse in-charge raises a Material
Transfer Note (MTN) for the material. He/she indicates the location where the
material has been received on the MTN. Thereafter, he/she updates the inventory
register indicating the receipt and issue of material. Subsequently, the warehouse
in-charge forwards the MTN details to Finance personnel, for updating the CWIP
register.

 Completion of work as per work order:

44
In case of work performed against a work order issued, the Project Manager (PM)
issues a Work Completion Certificate (WCC) and forwards the same to warehouse
in-charge, along with relevant documents, which are approved as per policy.

The warehouse in-charge prepares a Service Receipt Note (SRN) in System and
raises an MTN for services received. The warehouse in-charge indicates the
location where the services have been received on the MTN.

II) Inventory ageing and physical control

Warehouse personnel prepares an inventory ageing report as per defined frequency

capturing details such as item specification, vendor, quantity, date of receipt, GRN
details, user department etc. He/ she forward the ageing report to the respective
user departments for feedback. User department specify whether the material is
usable or is to be scrapped/transferred. Thereafter, the process for disposal of
material or transfer of material is initiated as indicated by the user department.

A joint physical verification of inventory is undertaken by Commercial and

Finance personnel as per the defined schedule. The verification is to reconcile
physical stock vis-à-vis stock reflected in the inventory records. If a variation is
noted, corrective action is taken as per policy.

III) Capital Work in Progress (CWIP) Accounting

Finance personnel receive GRN/SRN and approved invoice for materials/ services
received and passes an accounting entry for creating vendor liability and updates
CWIP inventory. The inventory cost accounted for in CWIP account excludes the
cenvatable tax component mentioned in the invoice. At the end of every month
finance personnel generates GRN/SRN report from SYSTEM, and reconciles the
same with invoices booked for the month. Thereafter he/she identifies all
GRNs/SRNs for which an invoice has not been received during the period and
forwards the same to Commercial personnel for validation. Once approved,

45
Finance personnel provisions for vendor liability for material/services against
which no invoices have been booked. Also he/she updates CWIP with the same.
Periodically finance personnel calculate ageing of CWIP inventory based on date
of receipt of goods as per GRN/SRN. He/ she identifies reasons for slow moving/
non moving items for material lying at locations, e.g. material lying at/ expenses
incurred for an abandoned site. The Finance personnel may consider taking
corrective actions e.g.
Explore possibility of reallocation of material, disposal or write off (where re-use/
re-allocation are not possible).

IV) Issue and dispatch of material:

On receipt of approved MRN from the user department the warehouse in-charge
prepares an MTN. He/she indicates the location to which material is to be
transferred as per the MRN. Thereafter, warehouse in-charge updates inventory
quantity in the inventory record and dispatches the material. He/she also forwards
the MTN details to Finance personnel for updating the CWIP register.

Warehouse in-charge also prepares a monthly report of MTNs issued, capturing

details of material issued and location of transfer. He /she forward this report on a
monthly basis to finance personnel, for ensuring comprehensive updating of the
CWIP register.

V) Updating of Fixed Asset Register and capitalization of assets

including provisional capitalization:

Finance personnel receives site on-air report and commissioning certificate/put to

use date, along with asset configuration details, from the PM/ user department on a
periodic basis. PM/ user department also forwards expansion and upgrade details.
In case there is no expansion or upgrade for the defined period a nil declaration
report is submitted to finance personnel. Finance personnel receive a monthly
MTN report from Commercial personnel and reconciles the same with inputs
received from PM/user department to identify items to be capitalized. Also, he/she
46
ascertains the category and useful life of the asset as per guidelines provided in the
accounting manual.

A finance personnel transfers items to be capitalized from CWIP to FAR and

passes accounting entries for the same.
VI) Asset Tagging

Finance personnel generate serial numbers for all assets to be tagged. Serial
numbers capture relevant asset details as per the format. Finance personnel
subsequently oversee fixing of labels on physical assets by external agency.
Thereafter, finance personnel carries out a random sample check for accuracy of
asset tagging performed by the appointed agency. Any discrepancies noted are
corrected.

VII) Inter location movement of asset

As per requirement, User Department personnel fills out the Asset Movement
Form (AMF) specifying the asset serial number and description, existing location
and location of transfer. The AMF is approved as per policy and the asset is
transferred. If the asset is being transferred to another location, user department
personnel send the AMF to Finance personnel. Finance personnel update the FAR
capturing movement details on a monthly basis.

VIII) Return of Assets to Warehouse

If the asset is being returned to the warehouse, the user department personnel
forward the AMF to warehouse in-charge. Warehouse in-charge makes an entry in
the Material Return Register (MRR).

In case an MRN is received for issue of returned goods within specified period,
warehouse in-charge raises an MTN capturing location of transfer. He/ she
dispatch material to the specified location as per MRN and forwards MTN details
to Finance Personnel. Finance personnel capture asset movement details in FAR. If
47
the asset is to be retained at warehouse, warehouse in-charge updates the inventory
details and forwards the same to Finance personnel for de-capitalization. Finance
personnel de-capitalize the asset, by transferring the asset from FAR to CWIP, as
per policy.

IX) Asset Disposal

An asset may be identified as obsolete as per the policy on identification and

disposal of scrap material. Details of such assets are captured on the AMF by the
user department and forwarded to warehouse in-charge. The warehouse in-charge
fills out an Asset Disposal Form (ADF) and forwards the same to finance
personnel.
Also, for assets identified for disposal in the feedback received from user
departments on inventory ageing, the warehouse in-charge fills out an ADF and
forwards the same to finance personnel.

Thereafter, the Finance personnel calculate the WDV for the asset to be disposed
and invite quotations for sale of the asset as per policy. Subsequently, he/she
performs a comparative analysis of quotes received and forwards the same to the
relevant authority, as per policy, for selection of a buyer. Once a buyer is identified
Finance personnel obtains the sale consideration from the buyer and generates a
sale invoice for the same.
Finance personnel oversee delivery of the asset to the buyer. Subsequently, he/she
updates the FAR, capturing details of the sale and passes an accounting entry for
disposal of asset.

X) Physical Verification of Assets

As per physical verification schedule, Finance personnel generates a list of assets

from FAR and forwards the same to external agency appointed for physical
verification of assets. The appointed agency submits the observations of the
physical verification capturing details of variance e.g. variance of quantity or
specification of book v/s physical asset. Thereafter, Finance personnel pass
relevant accounting entries and updates FAR.
48
 Key Performance Indicators

1. Timely and accurate updating of CWIP and FAR

2. Timely and accurate tracking of asset movement and return
3. Enhanced inventory and warehouse controls

Key Risk Elements

1. Delay in updating material receipts and issues

2. Inadequate feedback received from User Department pertaining to inventory
ageing.
3. Inadequate tracking of asset movement
4. Inadequate RFQ process for asset disposal.

49
 RESEARCH METHODOLOGY
&
DATA ANALYSIS

RESEARCH METHODOLGY

A detailed survey of employees working in SRANGA was carried out to

know their opinion regarding the Fixed Asset Management Process and to study &
analyze those policies to reach to a conclusion. The details of the methodology are
stated below:

50
Type of research :

 Descriptive Research

 Sampling Technique:

 Random Sampling

 Universe & Sample Size:

 10 employees (Universe)

 5 employees (Sample Size)

 Method of Data Collection

The data has been divided into two parts:

o Primary Data:

 Conducted personal interviews with the respondents

o Secondary Data:

 Website of RANGA India

 Annual Reports

FINDINGS & CONCLUSIONS

FINDINGS

Q-1 Do you intimate/specify about the goods if it is not as per the specification
made by the indenter?

51
 YES
NO

Q-2 Do you intimate account about the actual date of put to use of asset?

52
 YES
NO

Q-3 Whether the assets are physically verified at different intervals?

53
 YES
NO

Q-4 Are the assets in your possession are properly tagged?

54
YES
NO

55
Q-5 In case of transfer of asset from one place to another do you intimate the
finance?

YES
NO

56
CONCLUSIONS

In my report I learn that SRANGA is running by the experienced people that are
capable enough to take the competitive advantage in market.

 F&C department’s process is good but it is not feasible to make the

documents in EXCEL.

 When our MIS is hamper due to technical problems so it is suggested to

company to make another system as a supportive so we can do our work
without inconvenience.

 The Company can use software’s like SAP(System Analysis and Program
Development)

57
 ILLUSTRATIONS & ANNEXURES

Questionnaire

NAME:

DESIGNATION:

DEPARTMENT:

CONTACT NO:

Q-1 Do you intimate/specify about the goods if it is not as per the specification
made by the indentor?
Answer- 1. YES 2. NO

Q-2 Do you intimate account about the actual date of put to use of asset?
Answer- 1. YES 2. NO

Q-3 Whether the assets are physically verified at different intervals?

Answer- 1. YES 2. NO

Q-4 Are the assets in your possession are properly tagged?

Answer- 1. YES 2. NO

Q-5 In case of transfer of asset from one place to another do you intimate the
finance?
Answer- 1. YES 2. NO

Format of excel PO
58
 SRI RANGA ENTERPRISES
Plot - 3, Rainbow Tower, Amrapali Circle,
Bangalore,Karnataka,bangalorePIN - 302021
Phone:0141- 5100373, Fax: 0141- 5100390
PURCHASE ORDER
(Indigenous)
TO :   OUR P.O. NO:  
    DATED:  
    YOUR QUOT.NO:  
PAN.NO:   DATED:  
TIN NO:   INDENT NO. :  
Mobile NO.   Indentor's Name  
KIND ATTN :    
  P. O. Number must be quoted on all
  correspondence i.e. Challan, Invoice etc.
 
Dear Sirs, RST/CST/1421/04108
We are pleased to place our order for the following items in accordance with the terms and conditions
stated overleaf:
Qty. (In UNIT PRICE AMOUNT
S. NO. DESCRIPTION
Nos.) (Rs.) (Rs)
         
ORDER VALUE 0.00
(IN WORDS) : Rs.
Special Instruction:-
1-Bills submitted without attaching signed copies of the PO will not be considered for payment processing.
2-Packing has to be done as per instructions given by SRANGA.
3- Material has to be supply as per the approved sample; In case of any deviations from the sample
material may be rejected.
4- 500 No’s wall clock is delivered before 16-April-09.
Price Basis F.O.R. - SRANGA Bangalore Basic Value  
Delivery 8 Days from the date of PO Discount N/A
Mode of Dispatch By Road Excise Duty N/A
Mode of Payment By Cheque TAX / CST
100% within 30 days of
Payment Terms
submission of Invoice.    
    Total 0.00
Consignee Address :  
M/s Sri RANGA Enterprises  
Plot No -155,Jhotwara Ind.Area,  
Bangalore,Karnataka,bangalorePIN – 302021  
(Authorized
  (Authorized Signatory) Signatory)
     
Regd. Office : B-2D, SHIV MARG, BANI PARK, BANGALORE – 302016
Format of excel WO
SRI RANGA ENTERPRISES
59
 Plot - 3, Rainbow Tower, Amrapali Circle,
Bangalore,Karnataka,bangalorePIN - 302021
Phone:0141- 5100373, Fax: 0141- 5100390
WORK ORDER
(Indeginious)
TO :   OUR W.O. NO:  
    DATED:  
    YOUR QUOT.NO:  
    DATED:  
    INDENT NO. :  
Mobile NO.   Indentor's Name  
TELEFAX NO.    
KIND ATTN :    
  P. O. Number must be quoted on all
  correspondence i.e. Challan, Invoice etc.
  TIN No. - 08162104055
Dear Sirs, RST/CST/1421/04108
We are pleased to place our order for the following items in accordance with the terms
and conditions stated overleaf:  
UNIT
S. NO. DESCRIPTION Qty. (In Pcs.) PRICE AMOUNT
(Rs.) (Rs)
         
ORDER VALUE 0.00
(IN WORDS): Rs.
F.O.R. - SRANGA(Rainbow
Price Basis Tower) Bangalore Basic Value  
Delivery 1-2 Days from the date of WO Discount N/A
Mode of Dispatch By Road Excise Duty N/A
Mode of Payment By Cheque TAX  
100% within 30 days after
Payment Terms
delivery    
    Total  
Consignee Address :  
M/s Sri RANGA Enterprises  
Plot No -155,Jhotwara
Ind.Area,  
Bangalore,Karnataka,bangalor
ePIN – 302021  
(Authorised
  Signatory) ( Authorised Signatory)
     
Regd. Office : B-2D, SHIV MARG, BANI PARK, BANGALORE
– 302016  
CC: Accounts / Purchase / Stores
Format of GRN
SISTEMA RANGATeleservices Ltd.
Goods Receipt Note
( Plot No. 155, Jhotwara Industrial Area, Behind Ganesh Floor Mills, Jhotwara, Bangalore- Ph. 0141-5142699, 0141-5182258 BANGALORE

60
 KARNATAKA,BANGALORE)
CST/LST No.:
Status Approved
Vendor Name:   GRN No.: GRN/JTW/2008/
Address: GRN Date :
CST/LST No.: PO No.:
Transporter
Name: PO Date :
Lorry No. Ref Doc No.:
LR/RR No.: Ref Doc Date:
  RC No.:
  RC Date :
Item
Name Pending Order Accepted
S No. Challan Qty Received Qty Rejected Qty
Qty Qty
/UOM
             
             
             
             
             
             
             
             
             
Inspection
     
Details:
Inspected By: Approved By:
Prepared By:   Approved Dated:  
Regd. Office: B-2D, Shiv Marg, Banipark, Bangalore – 302016

Format of SRN
SISTEMA RANGATeleservices Ltd.
Goods Receipt Note
( Plot No. 155, Jhotwara Industrial Area, Behind Ganesh Floor Mills, Jhotwara, Bangalore- Ph. 0141-5142699, 0141-5182258
61
 BANGALORE KARNATAKA,BANGALORE)
CST/LST No.:
Status Approved
Vendor Name:   SRN No.: SRN/JTW/2008/
Address: SRN Date :
CST/LST No.: WO No.:
Transporter
Name: WO Date :
Lorry No. Ref Doc No.:
LR/RR No.: Ref Doc Date:
  RC No.:
  RC Date :
Item Pending
Received Rejected Accepted
S No. Name Order Challan Qty
Qty Qty Qty
/UOM Qty
             
             
             
             
             
             
             
             
             
Inspection
     
Details:
Inspected By: Approved By:
Prepared By:   Approved Dated:  
Regd. Office: B-2D, Shiv Marg, Banipark, Bangalore – 302016

Corporate Information
Board of Directors Depositories

62
Mr. Ron Sommer Chairman  National Securities Depository Ltd.
Mr. Sergey Cheremin Dy. Chairman 4th Floor, Trade World
Mr. Vsevolod Rozanov Whole Time Director Kamala Mills Compound
Mr. Rajiv Mehrotra Director Senapati Bapat Marg,
Mr. Ajay Khanna Managing Director Lower Parel
Mr. Alok Tandon Managing Director Mumbai-400 013
Mr. Suman Sehgal Director Ph: 91-22-24994200
Mr. Mikhail Shamolin Director Fax:91-22-66608035/24976351
Mr. Madhukar Director  Central Depository Service (India)
Ltd.
Phiroze Jeejeebhoy Towers,
17th Floor, Dalal Street,
Mumbai-400 001
Ph.: 91-22-22723333-3224
Fax: 91-22-22723199/22722072

Company Secretary Equity Shares Listing

Mr. Rashid J Malik Equity shares of the company are listed

at Mumbai & National Stock Exchange.
Auditors Internal Auditors

M/s S.R. Batliboi & Associates M/s Mehra Goel & Co.
Chartered Accountants, Chartered Accountants,
Golf View, Corporate Tower B, 505, Chiranjiv Towers,
Sector 42, Sector Road, 43, Nehru Place,
Gurgaon (Haryana), India New Delhi-110019, India
Bankers Corporate Office

 ICICI Bank RANGA India Towers, Plot No.334

 Punjab National Bank Udyog Vihar, Phase – lV,
 Bank of China Gurgaon (Haryana), India
 Indian Bank Website: www.rangaindia.in
 ABN Amro Bank Tel: 91-124-4812500
 VTB Bank Fax: 91-124-4812825
 Yes Bank
Registrar And Transfer Agents Registered Office

Indus Portfolio Pvt. Ltd. B2-D, Shiv Marg Bani Park,

G-65, Bali Nagar Bangalore-302 016,
New Delhi-110015 Karnataka,bangalore, India
E-mail: ippl@indusinvest.com Tel: 0141-5100510
Tel: 91-11-25172115, 25422805, 25422801
Fax:91-11-25449863

63
 BIBLIOGRAPHY

Websites:
 www.rangaindia.in

 www.rangagsm.com

 http://www.sistema.com/businesses/telecom/shyam

 http://www.itvarnews.net/news/9660/RANGA.html

 www.isourceupdates.com

Others:

 Annual Report
 Interview of Respondents

64